USDCAD US Dollar/Canadian Dollar

USDCAD NY Session Report - 2026-01-12

Session NY Session
Date January 12, 2026
Bias
🟒 Long
Confidence High

Session Snapshot

  • Open: 1.38750
  • High: 1.39050
  • Low: 1.38680
  • Close: 1.38815
  • MCM State: Markup (bullish continuation)
  • Volume Context: Peak (USDCAD prime NY session)
  • News Catalyst: USD strength (DXY +0.30%) + oil price weakness pressuring CAD; bullish pennant formation above Ichimoku cloud

Fundamental Drivers

Loonie under pressure from dual headwinds: USD strength (DXY +0.30%) and soft oil prices (CAD is oil-sensitive). US 10-Year Note Auction (1 PM EST, High Impact) critical - strong demand likely extends USD strength, pushing pair toward 1.3900. Technical shows neutral rating but bullish pennant pattern forming.

News Risk Assessment

  • Event Risk: Medium (US 10-Year Note Auction at 1 PM EST)
  • Impact: USD strength = upside continuation
  • Action: Avoid entries 15 min before/after 1 PM EST

Supply/Demand Zones

Demand Zones

Zone Range Status Strength
D1 1.38300-1.38500 Fresh Strong
D2 1.37800-1.38000 Tested Moderate
D3 1.37300-1.37500 Fresh Strong

Supply Zones

Zone Range Status Strength
S1 1.39200-1.39400 Fresh Strong
S2 1.39700-1.39900 Tested Moderate
S3 1.40200-1.40400 Fresh Strong

Support/Resistance Matrix

Level Type Price Strength Distance
R3 Psychological 1.40000 Strong +0.85%
R2 Supply Zone 1.39200 Strong +0.28%
R1 Intraday 1.39050 Moderate +0.17%
Current - 1.38815 - -
S1 Intraday 1.38680 Moderate -0.10%
S2 Demand Zone 1.38300 Strong -0.37%
S3 Psychological 1.38000 Strong -0.59%

Liquidity Hunt Map

  • Buy-Stop Clusters: Above 1.3920 (resistance zone)
  • Sell-Stop Clusters: Below 1.3830 (demand zone)
  • Recent Sweeps: Breakout from pennant pattern suggests accumulation
  • Next Target: Highly likely push to 1.3920-1.3950 if auction strengthens USD

Fear Factor Meter

FEAR [πŸ”΄πŸ”΄πŸŸ πŸŸ πŸŸ‘πŸŸ‘πŸŸ’πŸŸ’βšͺβšͺ] GREED
                    β–²
              Score: 7/10 β€” Risk On

Inputs: DXY=98.83 (+0.30%), Oil prices soft (CAD pressure), VIX=14.48 (risk-on)

Directional Bias

  • Bias: Long
  • Confidence: High
  • Rationale: Markup phase with bullish pennant breakout pattern. USD strength + CAD weakness (oil soft) provide fundamental support. Likely to test 1.3920 supply zone with possible extension to 1.4000.

Action Zones

| Setup | Entry | Trigger | TP1 | TP2 | SL |
|-------|-------|---------|-----|-----|----||
| 🟒 Long | 1.38300-1.38500 | Bullish rejection at D1 | 1.38900 | 1.39200 | 1.38150 |
| 🟒 Long | 1.38700-1.38850 | Breakout above 1.3890 | 1.39200 | 1.39500 | 1.38550 |
| πŸ”΄ Short | 1.39200-1.39400 | Bearish engulfing at S1 | 1.38900 | 1.38500 | 1.39550 |

Momentum View

"Markup phase with bullish pennant breakout favors longs targeting 1.3920-1.3950 supply. IF US Auction strong β†’ probable push to 1.3950+ as USD strength compounds CAD weakness from soft oil. Technical pattern + fundamental alignment suggest high-conviction long setup above 1.3850."